Lower bounds rule!
We propose two axioms that introduce lower bounds into resource monotonicity require- ments for rules for the problem of adjudicating con?icting claims. Suppose the amount to divide increases. The ?rst axiom requires that two claimants whose lower bound changes equally experience an equal change in awards. The second axiom requires that extra re- sources are divided only among those claimants who experience a strictly positive change in their lower bound. We show that, in the two-claimant case, Concede-and-Divide is the only rule that satis?es both axioms when the axioms are de?ned over a large set of lower bounds that include the minimal rights lower bound and the secured lower bound. We also show that, in the n-claimant case where at least one claimant claims the total amount, the Minimal Overlap rule is the only rule that satis?es both axioms when the axioms are de?ned over the secured lower bound.
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- Juan Moreno-Ternero, 2006.
"Composition, Securement, and Concede-and-divide,"
Spanish Economic Review,
Springer;Spanish Economic Association, vol. 8(3), pages 227-237, September.
- Juan de Dios Moreno Ternero & Antonio Villar Notario, 2003.
"The Talmud Rule And The Securement Of Agents? Awards,"
Working Papers. Serie AD
2003-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Moreno-Ternero, Juan D. & Villar, Antonio, 2004. "The Talmud rule and the securement of agents' awards," Mathematical Social Sciences, Elsevier, vol. 47(2), pages 245-257, March.
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